HYDERABAD: The Cyberabad Economic Offences Wing on Friday busted a multi-level marketing (MLM) racket that cheated over 14,600 people from across the State promising them high returns while siphoning off over Rs 150 crore in the form of investments. This is the third such racket busted by the Cyberabad Police in the recent past.
The racket run by a government school teacher, Methuku Ravinder, from Siddipet district collected money from people saying it would be put in chit funds, but used the cash as investment in other companies. A majority of his victims are farmers and belong to rural parts of the State, found police. Deposits worth `14 crore have been seized from various bank accounts in the name of Sun Pariwar Group, said Cyberabad Commissioner VC Sajjanar on Friday.
Ravinder was working as a Teacher at a school in Siddipet. Ravinder launched Sun Pariwar Group of Companies and later floated 7 firms under the group to collect money for different schemes. The issue came into light after D Durgadas an investor approached police.